What Is Power Purchase Agreement

PPP rates can be set, but they often include annual price indexation in the range of 1-5% to account for the efficiency of the system, which decreases as the system ages. increases in inflation-related costs for operating, monitoring and maintaining the system; and projected price increases for electricity supplied by the grid. An SPPA is a performance-based agreement in which the host client only pays for what the system produces. The duration of most PPPAs can range from six years (i.dem s the period during which the available tax benefits are fully realized) to 25 years. Under a PPA, the buyer is usually a utility or company that purchases electricity to meet the needs of its customers. .

This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.